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We stand by our report on price-fixing ' NCAA

Published by Punch on Tue, 22 Nov 2011


The Nigerian Civil Aviation Authority on Monday said it stood by its investigative report, which accused United Kingdom mega carriers, British Airways and Virgin Atlantic Airways, of fixing prices on the Lagos-London route.A statement by the Director-General, NCAA, Dr. Harold Demuren, also stressed that the service of pre-action notice on the agency by BA did not "preclude the enforcement of its action."An investigative report by NCAA had last week concluded that BA and VAA increased Passenger Fuel Surcharge subjectively on the Nigerian route. The PSF is a component of air fares. It is usually used by airlines to cushion the effects of uncontrollable fuel prices.The report recommended that BA should pay a $135m fine, while VAA should also pay $100m in fine to the government and the Nigerian passengers allegedly cheated by the airlines.Demurens reaction that the NCAA stood by the report followed the service of a pre-action notice on it by BA, signifying the carriers intention to seek redress in the court of law.He said the report was balanced and objective, adding that it was conducted "fairly and in conformity with the law."The statement read in part, "The Nigerian Civil Aviation Authority has taken meticulous care to ensure that all aspects of the investigation were conducted fairly and in conformity with the law. The NCAA, conscious of its regulatory role in the industry, took a balanced and objective posture to ensure that the rights of the investigated airlines were respected, as well as the interest of Nigerian passengers. "There is no specific indication under the law that the service of a pre-action notice or a proposed appeal on the NCAA precludes its enforcement action. Regarding the pre-action notice, the doctrine of lis pendens operates exclusively in respect of a subsisting suit and not a threatened suit. In addition, the desire to present an appeal does not of itself constitute a stay of enforcement action." The NCAA boss stressed that the report did not cover only the period 2004-2006, but spanned the activities of BA and VAA prior to and subsequent to the period. Demuren said that Section 30(4)(i) of the Civil Aviation Act, 2006 empowered the agency to "investigate and determine, upon its own initiative, whether any air carrier has been or is engaged in unfair or deceptive practices or unfair methods of competition in air transportation and or the sale of tickets thereof."The aviation regulatory agency boss also explained that the carriers were given fair hearing, noting that they made oral and written submissions during the process.
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